Since sales peaked in 2007, Build-A-Bear Workshop has struggled to maintain the same level of financial performance and remain relevant among its customers. In part, sales may have dipped as target consumers aged out of its product line. The 2008 recession also may have contributed to the dip in business. Whatever the cause, Build-A-Bear has been slow to bounce back.
But during her time as CEO, Sharon Price John has implemented a series of initiatives designed to improve profitability and consumer relevancy. Under her leadership, Build-A-Bear announced in January 2014 that it would close approximately 60 underperforming stores by the end of 2016 and would focus on key tourist markets. Additionally, after years of slashing prices to boost sales, the retailer decreased its total number of discounts by 30% in 2013. Since John took on the role in 2013, the retailer has seen 10 consecutive quarters of improved operating performance and reached $28 million in operating profit in 2015.
Now in 2015 and planning for 2016, Build-A-Bear has grown even more aggressive in its turnaround plan, which was developed based on consumer feedback and internal business metrics.
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For one, the company’s product and marketing functions have been restructured to consistently and simultaneously focus on key segments that include younger girls, older boys and affinity consumers. Build-A-Bear also has extended its store footprint beyond shopping malls, into smaller-scale branded shops in outlet centers, department stores and even theme parks, according to CNBC.
Most recently, Build-A-Bear Workshop also has unveiled a new store concept, updated its mobile-optimized web site and developed a YouTube channel featuring original content. All elements are positioning Build-A-Bear to better connect with Millennial parents.
After rebuilding for several months, Build-A-Bear has rolled out the new brick-and-mortar experience at the Mall of America in Bloomington, Minn. The location touts a new brand logo, updated storefront, color palette and improved store design. A new “inspiration wall” features different Build-A-Bear trends and fashions that align with pop culture, so visitors have creative ideas to personalize their stuffed animals.
The Mall of America store is the first of 11 renovated stores that will open by the end of 2015.
“As we look forward to celebrating two decades in business, we have begun to reinvent the company in a number of ways, all with a consumer-centric, brand-building and data-driven approach,” John said. “It’s especially exciting to see our brand become ‘multi-generational,’ as parents who first engaged with Build-A-Bear when they were children are now bringing their own children to share in the experience.”
